The Dollar index has broken resistance once again and now it looks like the upward move we were expecting has started. The target is 90-91. The bullish flag target is at 91 and at this level I expect to see the end of the move.
Black line = price channel
The Dollar index has broken above the sideways price channel and is making higher highs and higher lows. The trend is bullish. Support is at 88.45 and at 87.80. Resistance is at 90 and 91. These two levels are the targets of the bullish flag pattern. A fall below 87.80 would mean that a strong reversal is coming in the Dollar index.
The bullish flag pattern is once again shown in the weekly chart above. The weekly candle is supported below 88 and as I mentioned yesterday, this was a good bullish sign meaning a new upward move is at its early stages. However, bulls should be very cautious as we are at the final stages of the rise from 79.75. The target is 91. I would use 87.80 as a stop for any long position.
